Bill Gallagher explains how franchising lets founders scale without the cost. The Tox, a wellness brand from Los Angeles, opened 12 corporate locations across five cities before switching to franchising so the founder could stop funding expansion and traveling constantly.
If you have a successful independent business. Most independent business owners are not willing to lay out all the capital required to grow in different cities throughout the country, and it's just not necessary. I have a great, great hot new brand I just saw in L. A started in Studio City, California. It's called the Tox. It's essentially a lymphatic massage type concept. In the wellness segment, she built 12 locations in, like, five cities from New York to California before she said, all right, I'm done building corporate stores. My kids are getting older. I don't have time to travel all these places. Let me put local franchisees in place with my system, with my brand, and anybody that's joining that brand is lucky they get to slide right into what she's created.
